BUSN 491 Funding Comparisons

Comparison of Funding

Below is a chart comparing funding methods used by small business. The chart compares and contrasts requirements and agreements necessary to obtain the funding. They appear in the chart in the order below:

Funding option #1 is Bootstrapping

Funding option #2 is Banks/financial institutions

Funding option #3 is Factoring (Accounts Receivable financing)

Funding option #4 is Angel investor

Funding option #5 is Incubator firm

Funding option #6 is Venture capitalist

Funding option #7 is Small business association

Funding option #8 is Web-based Crowdfunding site

Please take some time and complete the necessary details within the chart below.

	Option 1	Option 2	Option 3	Option 4	Option 5	Option 6	Option 7	Option 8
Type of Financing	Bootstrapping	Debt Instrument: Bank Loan	Debt: Factoring A/R Financing	Equity Instrument: Angel Investor	Equity: Business Incubator	Equity Instrument: Venture Capitalist	SBA or State Grants or Loans	Kickstarter: Web-based Crowdfunding site
Defined
Requirements
Advantages
Disadvantages

Sources:

Anonymous (2013) Accounts Receivable Financing. Investopedia. Retrieved March 24, 2013 from http://www.investopedia.com/terms/a/accountsreceivablefinancing.asp?vm=r

Anonymous (2013) Angel Investors. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/a/angelinvestor.asp#axzz2NZ9ZOtxu

Anonymous (2013) Bootstrap. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/b/bootstrap.asp#axzz2NZ9ZOtxu

Anonymous (2013) Equity Financing. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/e/equityfinancing.asp#axzz2NZ9ZOtxu

Anonymous (2013) Facts about Government Grants. SBA. Retrieved March 24, 2013 from

http://www.sba.gov/category/navigation-structure/loans-grants?vm=r

Anonymous (2013) Loans. Investopedia. Retrieved March 14, 2013 from

http://www.investopedia.com/terms/l/loan.asp#axzz2NZ9ZOtxu

Anonymous (2013) Incubator Firm. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/i/incubatorfirm.asp#axzz2NZ9ZOtxu

Anonymous (2012) Types of Debt Financing for Small Business. NFIB. Retrieved March 24, 2013 from

http://www.nfib.com/business-resources/business-resources-item?cmsid=50828

Anonymous (2013) Venture Capital. Investopedia. Retrieved March 14, 2013 from http://www.investopedia.com/terms/v/venturecapital.asp#axzz2NZ9ZOtxu

Mariotti, S., Glackin, C. (2013) Entrepreneurship: Starting and operating a small business. 3rd ed. Upper Saddle River, NJ: Pearson

Chaafkin, M. (April 2013). Kickstarter can fund your dreams. Fast Company, 174, 92.